| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 27.34 | 272 |
| Intrinsic value (DCF) | 2.80 | -62 |
| Graham-Dodd Method | 1.13 | -85 |
| Graham Formula | 5.21 | -29 |
Zhejiang Shapuaisi Pharmaceutical Co., Ltd. is a specialized Chinese pharmaceutical manufacturer with a 45-year legacy since its 1978 founding in Pinghu, China. The company operates in the competitive drug manufacturing sector, focusing on research, development, production, and distribution of pharmaceutical products across multiple therapeutic categories. Shapuaisi's diverse portfolio spans ophthalmology, antipyretic and analgesic, antibacterial anti-inflammatory, endocrine, cardiovascular, gynecology, and infusion treatments, delivered through various dosage forms including injections, oral solutions, eye drops, tablets, and capsules. As a Shanghai Stock Exchange-listed company, Shapuaisi serves China's growing healthcare market with specialized generic and specialty pharmaceutical solutions. The company's multi-category approach positions it to address diverse medical needs while leveraging manufacturing expertise across different drug delivery systems. With China's pharmaceutical market expanding due to demographic trends and healthcare reforms, Shapuaisi's established presence and broad product range provide a foundation for potential growth in the specialized generic drug manufacturing segment.
Zhejiang Shapuaisi Pharmaceutical presents a high-risk investment profile characterized by significant financial challenges. The company reported a substantial net loss of CNY -123.4 million for the period, with negative diluted EPS of -0.33, indicating operational difficulties. While the company maintains a modest market capitalization of approximately CNY 3.02 billion, its financial performance raises concerns about sustainability. Positive aspects include a low beta of 0.364, suggesting lower volatility relative to the market, and a small dividend payment of CNY 0.02 per share. However, negative operating cash flow of CNY 25.7 million combined with substantial capital expenditures of CNY -128.1 million indicates cash flow strain. The company's cash position of CNY 82.8 million appears insufficient relative to total debt of CNY 242.2 million, creating liquidity concerns. Investors should carefully evaluate the company's turnaround strategy and competitive positioning before considering investment.
Zhejiang Shapuaisi Pharmaceutical operates in China's highly competitive specialty and generic pharmaceutical market, where it faces intense pressure from both domestic giants and specialized players. The company's competitive positioning is challenged by its relatively small scale compared to industry leaders, with revenue of approximately CNY 484 million placing it in the mid-to-lower tier of Chinese pharmaceutical manufacturers. Shapuaisi's broad therapeutic focus across ophthalmology, analgesics, anti-inflammatories, and other categories provides diversification but may limit its ability to achieve dominant market positions in specific therapeutic areas. The company's competitive advantages include its 45-year operating history, established manufacturing capabilities across multiple dosage forms, and existing regulatory approvals. However, these are offset by significant financial constraints that limit R&D investment capacity compared to larger competitors. In the ophthalmology segment, Shapuaisi faces competition from specialized players with stronger R&D pipelines, while in generic categories it competes with scale-driven manufacturers benefiting from cost advantages. The company's negative profitability suggests operational inefficiencies or pricing pressures that undermine its competitive stance. Success likely depends on focusing on niche therapeutic areas where specialized expertise can overcome scale disadvantages, though current financial challenges may constrain strategic flexibility.